Series: IMF Working Papers
Author(s): Jan Bruha , Jiri Podpiera , and Stanislav Polak
Publisher: INTERNATIONAL MONETARY FUND
Publication Date: 01 May 2007
Keywords: Two-country modeling, Convergence, exchange rate, real exchange rate, transition economy, transition economies, exchange rate appreciation, Covergence,
In this paper we develop a two-country dynamic general equilibrium model by means of which we seek to explain the long-run paths of a converging emerging market economy. We borrow a paradigm from the New Open Econo...